The Securities and Exchange Board of India (Sebi) on Wednesday cut the timeline for listing of shares on stock exchanges after the closure of initial public offerings (IPOs) to three days from six days.

The market regulator said in a circular that the new timeline will be done under two phases. To begin with, it will be voluntary for all public issues opening on or after September 1 and made mandatory for all the issues coming after December 1, 2023.

The reduction in timelines for listing and trading of shares is expected to benefit both issuers as well as investors. While issuers will have faster access to the capital raised thereby enhancing the ease of doing business, the investors will have the opportunity of early credit and liquidity for their investment.

“It has been decided to reduce the time taken for listing of specified securities after the closure of public issue to three working days (T+3 days) against the present requirement of 6 working days (T+6 days). ‘T’ being issue closing date,” the regulator said.

The timelines for submission of application, allotment of securities, unblocking of application money and listing shall be made a part of pre-issue, issue opening and issue closing advertisements.